BUSINESS

Consumer Stocks SOAR to New Highs After Surprising Inflation Twist!

Stocks in the consumer discretionary sector received a significant boost on Tuesday following relatively mild inflation data. This development sparked optimism that consumers would have increased spending power if the pace of price hikes slowed down.

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The Consumer Discretionary Select Sector ETF XLY, 3.32%, surged 1.5% to reach a two-month high during premarket trading, rising from a mere 0.5% before the release of the consumer price index data.

Stocks

Notably, Tesla Inc. TSLA, +4.40% saw a 4.1% jump toward a one-month high (compared to a 1.8% increase pre-data), Amazon.com Inc. AMZN, +3.01% climbed 1.7% to a 19-month high (versus 0.5% before the data), and Ford Motor Co. F, +5.79% gained 0.7%, up from 0.1% pre-data among the ETF’s most-active components.

Consumer staples companies, which provide essential goods, also experienced a positive impact from the Consumer Price Index (CPI). Walmart Inc. WMT, 0.33% shares increased by 0.3%, Target Corp. TGT, 4.46% rose by 1.2%, and Costco Wholesale Corp. COST, +1.61% tacked on 0.4%. Prior to the data release, Walmart’s stock was up 0.2%, Target’s was up 0.8%, and Costco’s was up 0.3%. Meanwhile, the SPDR S&P 500 ETF SPY, 2.04% surged 1.3%, up from a modest 0.1% increase before the data was made public.

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